HCPS FL Logo Business
Action Item
DATE: Tuesday, February 16, 2016
TO: School Board Members
FROM: Jeff Eakins, Superintendent
SUBJECT / RECOMMENDATIONS

Approve Advance Refunding of the Outstanding Certificates of Participation (COPs), Series 2007 (the "Refunded Certificates") (Business Division)

  1. Adopt the Board Certificate Resolution authorizing the refunding of the Refunded Certificates.  Authorize the use of Bank of America Merrill Lynch, Citigroup and Raymond James & Associates as the underwriters for this transaction.  Authorize staff to work with the District's Financial Advisor and Bond Counsel to proceed with the refunding as long as market conditions remain favorable.
  2. Recess as members of the School Board and convene as the School Board Leasing Corporation.
  3. Adopt the Corporate Resolution authorizing the refunding of the Refunded Certificates.
  4. Adjourn as members of the School Board Leasing Corporation and reconvene as the School Board.
EXECUTIVE SUMMARY
The district's financial advisor, Jerry Ford, has provided an analysis showing that the current market will allow the district to realize a net present value savings of approximately $5.5 million by refunding the Series 2007 COPs.  The savings will result in a reduction of the debt service (lease payments) payable by the district from revenues derived from the capital outlay millage.  This agenda has been reviewed as to legal form and sufficiency by John Stokes, Bond Counsel.  Mr. Stokes and Mr. Ford will be present to answer questions and assist the Board in this endeavor.

A copy of both the Certificate Resolution and the Corporate Resolution are available for viewing in the School Board office.
STRATEGIC OBJECTIVES
• Align financial resources to support the district's strategic goals • Demonstrate best financial practices
FINANCIAL IMPACT (Budgeted:  No)
Approximate net present value savings of $5.5 million will be realized over the life of the Refunded COPs (based on market conditions as of January 26, 2016).  Such net present value savings indications are inclusive of legal and professional costs associated with the transaction.
EVALUATION
SUBMITTED BY:  Steve Brady, Assistant Department Manager for Cash Management
Susan Garcia   Gretchen Saunders
Manager, Services and Support, Budget
(813) 272-4094		   Chief Business Officer
(813) 272-4270
    C 6.05
Hillsborough County Public Schools (Florida) * Mtg.#20160216_754 (Board Meeting) * Section C Item# 6.05